“The latest living wage calculations show just how far working Kiwis’ wages are falling behind, but the Government is looking out for everyone except workers,” says ACT Leader David Seymour.
“The latest living wage calculations show just how far working Kiwis’ wages are falling behind, but the Government is looking out for everyone except workers,” says ACT Leader David Seymour.
“The living wage is increasing to $26 per hour in September, an increase of 9.9 per cent on the 2022/23 rate. Meanwhile the average worker’s wage after tax has grown by just 6.2 per cent. Kiwis are paying more and getting taxed more, but their wages can’t keep up.
“Working New Zealanders have taken a pay cut, by about 3.7 per cent if we’re taking the living wage recalculations into account.
“The Government has given more money to beneficiaries, students and minimum wage workers, but the 2.8 million working New Zealanders have to try and make things work while larger and larger portions of their income disappear to keep food on the table, gas in the car, a roof over their heads and inexplicably more in the Government’s coffers.
“Since Grant Robertson became Finance Minister the average worker tax rate for personal income tax has increased from 20 per cent to 22 per cent. This means the average worker is being taxed an extra $3,629 annually.
“When you incorporate GST, it gets even worse. In 2017, it was $8,083 per earner. It increased to $9,640 per earner in 2022.
“The cost of living crisis is ultimately a crisis of values. New Zealand was built on hard work but Government policy is more focussed on dividing than growing.
“This country is grappling with so many significant challenges – a cost of living crisis, out of control crime, a truancy crisis, and a health system under immense stress.
“ACT is the only party with a fully-costed alternative budget. That budget explains how we can reduce wasteful spending without touching frontline services and deliver tax relief for hardworking Kiwis.
“We would dump the bright-line capital gains tax completely, give a $2,000 tax cut to someone on the average wage, scrap the 39 per cent envy tax, and restore interest deductibility.
“ACT is the only party working for workers. The challenges New Zealand faces can be addressed. But in order to do that there needs to be a strong economy built around creating conditions for prosperity, giving people the opportunity to get ahead.”